Assignment Help :Understanding Economic Business Cycle, Phases and Effects
The Business Cycle and Built in stabilizers are indicators of growth when the economy is doing well and reflect the disturbances when the economy is not doing well. The business cycle tells that the economy is slowly coming out of the depths of a very bad period of retarded growth and is aiming to go towards a recovery mode. As the short term interest rates stabilize and the monetary policies stabilize with increased rates investment the future looks good. Unemployment levels have fallen and savings have picked up with household spending also increasing. In today’s economic scenario where there is an urgent need.
The last 60 years have taught that unless there is a real fight towards bringing down inflation there could be on visible signs of growth. There have to strict regulation of the money market for short term interest rates to become credible. Unemployment and poverty have to be a concrete measure in the growth of the economy as per research undertaken by USA macroeconomics assignment help research team. The currency stabilizer and exchange rate of the dollar has had wild swings leading to adverse balance of payments and the two economic cycles of depression had dealt a deathblow to growth. These data always help in understanding economic cycles and prepare policy makers and monetary authorities to stabilize on policies. Business Cycle is divided into the following four phases:-peak, recession, trough, expansion! Provide the characteristics of each.
- Peak Phase: where the economic inputs are prospering otherwise known as boom characterized by high levels of spending and hectic investment
- Recession Phase: where the economic factors are slowly not getting used or showing inactivity. Where disposable incomes are not so high, lethargic investment and falling rates of interest .
- Trough Phase: where there is no movement of goods and services, high levels of unemployment and banks are unable to finance investments
- Recovery or expansion Phase: economic inputs are being used by government stimulus and the economy is recovering
The four phases of the business cycle impact the economy in a way that impacts growth as they impacted many microeconomics factors as found by experts from microeconomics assignment help team.The first phase is the phase of prosperity where everything is working towards maturity .The second stage is when demand falls and there is a general set back called regression. The third stage is when there are high levels of unemployment due to lack of jobs and this is called as the most dangerous phase of no development. The fourth stage is progression where through fiscal stimulus the economy is made straight.